Correlation Between Kangxin New and Hunan Mendale
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By analyzing existing cross correlation between Kangxin New Materials and Hunan Mendale Hometextile, you can compare the effects of market volatilities on Kangxin New and Hunan Mendale and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Kangxin New with a short position of Hunan Mendale. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kangxin New and Hunan Mendale.
Diversification Opportunities for Kangxin New and Hunan Mendale
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between Kangxin and Hunan is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Kangxin New Materials and Hunan Mendale Hometextile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hunan Mendale Hometextile and Kangxin New is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Kangxin New Materials are associated (or correlated) with Hunan Mendale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hunan Mendale Hometextile has no effect on the direction of Kangxin New i.e., Kangxin New and Hunan Mendale go up and down completely randomly.
Pair Corralation between Kangxin New and Hunan Mendale
Assuming the 90 days trading horizon Kangxin New Materials is expected to under-perform the Hunan Mendale. But the stock apears to be less risky and, when comparing its historical volatility, Kangxin New Materials is 1.09 times less risky than Hunan Mendale. The stock trades about -0.02 of its potential returns per unit of risk. The Hunan Mendale Hometextile is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 519.00 in Hunan Mendale Hometextile on October 26, 2024 and sell it today you would lose (195.00) from holding Hunan Mendale Hometextile or give up 37.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kangxin New Materials vs. Hunan Mendale Hometextile
Performance |
| Timeline |
| Kangxin New Materials |
| Hunan Mendale Hometextile |
Kangxin New and Hunan Mendale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kangxin New and Hunan Mendale
The main advantage of trading using opposite Kangxin New and Hunan Mendale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kangxin New position performs unexpectedly, Hunan Mendale can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Hunan Mendale will offset losses from the drop in Hunan Mendale's long position.| Kangxin New vs. Zijin Mining Group | Kangxin New vs. Wanhua Chemical Group | Kangxin New vs. Baoshan Iron Steel | Kangxin New vs. Shandong Gold Mining |
| Hunan Mendale vs. Zhongrun Resources Investment | Hunan Mendale vs. Beijing Mainstreets Investment | Hunan Mendale vs. Shandong Longquan Pipeline | Hunan Mendale vs. Citic Offshore Helicopter |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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